TSME #022: Wealth Building - Frequently Asked Questions

Tyrone Jackson, The Wealthy Investor, answers the most common questions he is asked about trading and investing: 

1) It all seems so complicated, where do I go to actually open my online brokerage account?

Prior to the internet you would need a family relationship to someone at a brokerage account to help guide you through the stock market. The stock market was the playground for the rich because you would have to actually follow your stocks in the newspaper to see if they went up or down. It was hard to get rich if you didn’t have access to the information. Well now we all have access to the information online. We can do our research for free. This means that anyone with $500 - $1000 can go to ETrade.com, TDAmeritrade.com, Fidelity.com, or Schwab.com and open an online brokerage account. Once you fund your account you have access to buying and selling stocks.

However, if you have no financial education you can get yourself into trouble. One of Tyrone Jackson’s first rules is to never buy stocks that are under $20 per share. Those stocks generally don’t have institutional involvement in them. A good rule of thumb is to be in the stocks that the big money is in.

Be humble enough to know that theres a lot of things you won’t know. Don’t be afraid to ask questions.

2) How do I know what stocks to start with?

There are a hundred ways to start investing. The stock market is one game and 100 ways to play it. Simply, start with companies you are familiar with because it will be easier to do research on them. It is also wise to only buy stocks that are in the DOW Jones Industrial Average.

3) Can you explain what a covered call is?

Writing a covered call is essentially buying some shares that you are willing to sell the rights to at a higher price, which is called the strike price. Whether or not the stock reaches that higher price, you get paid for that right to buy it. This type of trade can be made as frequently as every week and it can be made in your IRA and your cash account. It is very versatile. The Wealthy Investor program can teach you to build a whole profile around covered call writing.

Listen to the episode to hear more of Tyrone Jackson's helpful answers. 

You will have access to Wall Street for the rest of your life, but you need a financial education to teach you how to utilize it. Start your education today at WITradeSchool.com. Or download the Tyrone Jackson's FREE eBook at TheWealthyInvestor.net.